Client Alert: Governor Healey Signs Historic Massachusetts Tax Bill

October 5, 2023

BOSTON, MA – (October, 2023) – On Wednesday, October 4, 2023, Governor Maura Healey signed Bill H. 4104, also known as An Act to Improve the Commonwealth’s Competitiveness, Affordability, and Equity (the “Act”), marking Massachusetts’ first tax cuts in more than 20 years.

One of the most notable provisions of the Act is the increase of the Massachusetts estate tax filing threshold from $1,000,000 to $2,000,000 and making the threshold a true exemption.

Further, the Act not only raises the estate tax threshold, but effects this increase retroactive to January 1, 2023.  Thus, the estate of a Massachusetts resident, dying after December 31, 2022, will only be required to file a Massachusetts estate tax return if the decedent’s federal taxable estate exceeds $2,000,000.  Further, by enacting a true exemption, $2,000,000 will be exempt from estate taxes for all estates taxable in Massachusetts.

Fiduciaries and family members handling estate and trust administrations for decedents, who were Massachusetts residents dying after December 31, 2022, should be aware of this increase in the Massachusetts estate tax filing threshold as Massachusetts filing requirements and estate taxes may be impacted.

Massachusetts residents are encouraged to review their current estate plans to be sure their objectives will be met in light of this increase.

For more information, please contact your Rubin and Rudman LLP estate planning attorney. If you do not have one, we will refer you to one of the attorneys in our Trusts and Estates Department.